White Cliff farmed out Lake Percy in mid-2016 enabling the company to retain a free carried interest.
Liontown may earn up to 70% in the project by spending $1.75 million on exploration within four years of the agreement.
Geochemistry has now revealed a highly promising lithium oxide anomaly which contains values of up to 354 parts per million lithium oxide.
It has been outlined over a strike length of 2 kilometres and is coincident with pegmatites which locally exceed 100 metres true thickness.
Lake Percy is located 440 kilometres east of Perth in the emerging Forrestania lithium province which includes the Mt Cattlin spodumene mine operated by Galaxy Resources (ASX:GXY) and the Mount Day lithium discovery.
Lake Percy is also located just 60 kilometres east of the world-class Earl Grey lithium discovery being developed by Kidman Resources (ASX:KDR).
The maiden reverse circulation drilling program at Lake Percy is scheduled to commence in early February 2017.